Philadelphia Economic Growth Is Fueled By Food Products
Since November of 2014, the business growth in the Philadelphia area continues to improve. The majority of growth can be found in retail sales, tourism and real estate leasing according to the Federal Reserve Beige Book. Although the construction in residential and commercial real estate slowed somewhat, it is still on an upward rise, chances are the slowdown is due to the winter weather; and energy prices are having a positive effect on the manufacturing business as well.
On a much greater upswing, transportation services are booming. With Uber being so popular, similar services are popping up all around the region. Also, rail and bus services are doing well due to added routes and lines, and the construction of new railways and routes continue to progress. Most businesses who were interviewed feel very positive about the economic outlook for 2015 and beyond - mostly due to a less charged federal fiscal policy and continued expansion in hiring.
The manufacturing industry is still finding orders and shipments for the beginning of 2015, according to Beige Book. Especially with the makers of food products, fabricated metals, and industrial machinery.
It is anticipated that economic growth will improve over the next six months. It was announced in recent news that a Pennsylvania-based company has purchased a large confectionery company from China, and a manufacturing plant by a different Chinese firm is expected to be built-in the Harrisburg area. Thus bringing in $40 million in investments to the state and $30 million in building costs for the new plant.
Although the weather and a short holiday season could have affected sales in retail, they actually caused buyers to be more motivated which ended up doubling the average purchase for the 2014 holiday season. Shopping traffic may have been down but people purchased more.
The economic outlook for January 2015 still looks positive for the Philadelphia and surrounding areas despite the end of the holiday season, which doubled in revenue from the previous year. Growth in transportation and continued hiring trends have kept the manufacturing industry thriving and looks to continue for the next six months.
Christina Thompson is a freelance writer living in Philadelphia. Her work can be found at Examiner.com.